It can happen when you least expect it – your credit card is declined! In some cases, you might not have enough money in your account, or you forgot to tell your bank you’re traveling abroad. But if you’re shopping online, an error or “card declined” message may be a sign of a new twist on online shopping scams.
BBB Scam Tracker has received reports from consumers receiving fraudulent charges on their financial accounts after facing “card declined” messages when shopping online. AAA has also recently warned consumers about fraudulent emails promising a free emergency kit, in which consumers faced similar “card declined” error messages but were still charged.
How this scam works
You’re shopping online and decide to purchase from a retail website. Or, you receive an email from what you think is a reputable business for a discounted or free offer and decide to take advantage. You enter your personal information, including your email address, phone number, and shipping address.
When you enter your debit or credit card number for payment, the website tells you that your card was declined or you receive an error message, “Your card did not go through for some reason.” This is unexpected since you have enough funds in your account. You decide to try another card for payment, but you receive the same error message!
You’re concerned, so you call your bank or credit card company. To your surprise, the representative tells you that your cards have not been declined; instead, you’ve been charged more than you anticipated for the purchase. You realize that either the website you were shopping on was a scam or the email you were sent from the business was fraudulent, and you gave your personal and financial information to a scammer.
Several consumers have reported similar experiences to BBB Scam Tracker. In one example, someone shared, “I attempted to purchase a water bottle from [company name redacted] for my son…The website declined my initial transaction, so I attempted it with a different credit card, which was also declined. I then asked my husband to try…and it was declined for him as well…each of these three payment methods…all had fraudulent charges pop up.” This consumer reported losing $200.
How to avoid similar scams
- Verify you’re shopping on a legitimate website. Scammers build fake, lookalike websites to trick shoppers into thinking they are buying from the actual business. Look closely at the URL (it may be off by a letter or two) and check that the website is secure by verifying you see the “https://” in front of the URL.
- Watch out for fake emails, texts, and ads. Scammers love impersonating businesses in fake emails, text messages, and social media advertisements. Don’t trust unsolicited messages, and always verify links before clicking on them. When in doubt, delete the message or ignore the ad, and visit the business’s website on your own instead of clicking the links.
- Don’t be fooled by great offers. Prices that seem too good to be true often are. If you’re unsure about purchasing from a business, shop around with other retailers to compare the pricing of the product you want. Get an idea of the actual price of the product. You may be able to find the product at a trustworthy retailer (such as a BBB Accredited retailer) and feel more comfortable making your purchase.
- Research the business. Before purchasing, look up customer reviews online and search the business on BBB.org. Look for the BBB Seal to verify if the business is BBB Accredited. If you think it may be a scam, search on BBB Scam Tracker.